Philip Hammond warns of ‘catastrophe’ if no Brexit deal is agreed on Irish border

Philip Hammond also told a German newspaper that the the final Brexit bill would be between £35 billion and £39 billionLEAL-OLIVAS/GETTY IMAGES

Philip Hammond has told a German newspaper that it would be a “catastrophe” if Britain and the European Union failed to find a solution to the Irish border problem.

Brexit negotiators are a fortnight into six weeks of talks on the issue, with the UK insisting that it will find a technological solution to maintain the free flow of goods and services.

In a sign that both sides are trying to win Berlin’s support, Michel Barnier, the EU’s chief negotiator, gave an interview to a rival German newspaper in which he pressed for Northern Ireland to remain inside the customs union. This has been ruled out by Theresa May, warning that it would “threaten the constitutional integrity of the UK”.

The chancellor also told the…

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